How do you find the breakeven point in price?

Hi,

BE(0) = (Price - Variable costs)*Qty - Fixed costs

So you need to plug in VC, FC, and quantity of units sold.

Best

Hello!

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• Financial concepts: Balance sheet, Income statement/P&L and Performance ratios (based on sales and based on investment), +1 practice case
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First, you take the total fixed cost and divide it by the number of units to calculate the required unit margin. Then, you add that required unit margin to the variable cost (per unit cost), which gives you the required price.

However, in case interviews you are more likely to get a question around finding the breakeven quantity rather than the breakeven price.